Educating Girls, Educated Women Dehomogenizing the Impact of Education in Development
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Jun 12, 2020
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Abstract
After a half-century of failed top-down international aid efforts that ignore basic microeconomics, the New Development Economics (NDE) offers an alternative. First, sound institutions (such as rule of law, property rights, contractual enforcement, etc.); second, respect for basic microeconomic principles (from incentives to knowledge). Within the New Development Economics, development economist William Easterly offers controversial and innovative insights; one of these is the ineffectiveness of education - alone, and without sound institutions - for promoting growth. We argue that Easterly is generally correct, but we improve on Easterly's lessons by dehomogenizing education. Specifically, education for girls has high marginal returns: at the micro level, even a slight increase in education dramatically improves the health of girls - and their daughters - in a virtuous cycle. At the macro level, educated women have a significant marginal impact on growth and institutional improvement. We complement a theoretical approach with a case study that demonstrates the importance and marginal impact of educating girls - even if sounds institutions are not yet present.
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References
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[60] Rosenberg, Nathan. 1960a. "Capital Formation in Underdeveloped Countries." American Economic Review, Vol. 50, No. 4, Sep. 1960, 706-71.
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[65] Scully, Gerald. 1992. Constitutional Environments and Economic Growth. Princeton: Princeton University Press.
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[71] Tullock, Gordon. 1975. "The Transitional Gains Trap." The Bell Journal of Economics, Vol. 6, Issue 2, 671-678.
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[2] Bastiat, Frederic. 2012[1850]. The Law, New York: Tribeca Books.
[3] Bauer, P.T. 1972. Dissent on Development, Cambridge: Harvard University Press.
[4] Bauer, P.T. 2000. From Subsistence to Exchange, Princeton: Princeton University Press.
[5] Baumol, William. 1990. "Entrepreneurship: Productive, Unproductive and Destructive." Journal of Political Economy, Vol. 98, No. 5, Part 1, Oct. 1990, 893-921.
[6] Boettke, Peter and Christopher Coyne. 2003. "Entrepreneurship and Development: Cause or Consequence?" in Koppl, Roger, Birner, J. and Kurrild-Klitgaard, Peter (editors). 2003. Austrian Economics and Entrepreneurial Studies (Advances in Austrian Economics, Vol. 6), Bingley: Emerald Group Publishing Limited, 67-87.
[7] Boettke, Peter, Christopher Coyne, and Peter Leeson. 2008. "Institutional Stickiness and the New Development Economics." American Journal of Economics and Sociology, 2008, 67(2): 331-358.
[8] Birchler, Kassandra and Katharina Michaelowa. 2016. "Making Aid Work for Education in Developing Countries: An Analysis of Aid Effectiveness for Primary Education Coverage and Quality." International Journal of Educational Development, Volume 48.
[9] Buchanan, James M. 2000[1975]. The Limits of Liberty: Between Anarchy and Leviathan, in The Collected Works of James M. Buchanan, Volume 7. Indianapolis: Liberty Fund.
[10] Buchanan, James M. and Gordon Tullock. 1962. The Calculus of Consent: Logical Foundations of Constitutional Democracy. Ann Arbor: niversity of Michigan Press.
[11] Chudgar, Amita. 2009. "The Challenge of Universal Elementary Education in Rural India: Can Adult Literacy Play a Role?" Comparative Education Review 53(3), 403-433.
[12] Coyne, Christopher. 2013. Doing Bad by Doing Good: Why Humanitarian Action Fails. Redwood City, CA: Stanford University Press.
[13] Coyne, Christopher and Peter Leeson. 2004. "The Plight of Underdeveloped Countries." 24 Cato Journal, Vol. 24, No. 3.
[14] De Soto, Hernando. 2000. The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else. New York: Basic Books.
[15] Diop, Nafissatou J. and Ian Askew. 2009. "The Effectiveness of a Community-based Education Program on Abandoning Female Genital Mutilation/Cutting in Senegal." Studies in Family Planning 40(4), 307-318.
[16] Dixon, Pauline. 2013. International Aid and Private Schools for the Poor: Smiles, Miracles and Markets. Cheltenham, UK and Northampton, MA: Edward Elgar.
[17] Dopfer, Kurt, John Foster and Jason Potts. 2004. "Micro-meso-macro." Journal of Evolutionary Economics, vol. 14(3), 263-279.
[18] Easterly, William. 2001. The Elusive Quest for Growth: Economists' Adventures and Misadventures in the Tropics. Cambridge, MA: MIT Press.
[19] Easterly, William. 2006. The White Man's Burden: Why the West's Efforts to Aid the Rest Have Done So Much Ill and So Little Good. New York: Penguin Books
[20] Easterly, William. 2014. The Tyranny of Experts: Economists, Dictators, and the Forgotten Rights of the Poor. New York: Basic Books
[21] Easton, Peter, Karen Monkman and Rebecca Miles. 2003. "Social Policy from the Bottom up: Abandoning FGC in Sub-Saharan Africa." Development in Practice 13(5), 445-458.
[22] Esty, Katherine. 2013. Twenty Seven Dollars and a Dream: How Muhammad Yunnus Changed the World and What it Cost Him, Katherine Esty Company
[23] Gupta, Sreela, Sushmita Mukherjee, Sampurna Singh, Rohini Pande and Sharmishtha Basu. 2008. "Knot Ready: Lessons from India on Delaying Marriage for Girls." Washington, DC: International Center for Research on Women.
[24] Gwartney, James, Robert Lawson, and Joshua Hall. 2016. Economic Freedom of the World: 2016 Annual Report. Vancouver, BC: Fraser Institute
[25] Gwartney, James, Richard Stroup, Russel Sobel and David Macpherson. 2005. Economics: Private and Public Choice, 11th edition, Cengage Learning
[26] Hancock, Graham. 1994. The Lords of Poverty: The Power, Prestige and Corruption of the International Aid Business. New York: Atlantic Monthly Press
[27] Harper, David. 2003. Foundations of Entrepreneurship and Economic Development. New York: Routledge.
[28] Hayek, F.A. 1945. "The Use of Knowledge in Society." The American Economic Review, 35 (4): 519-30
[29] Hayek, F.A. 1979[1952]. The Counter-Revolution of Science: Studies on the Abuse of Reason. Indianapolis: Liberty Fund.
[30] Heyneman, Stephen, and Bommi Lee. 2016. "International Organizations and the Future of Education Assistance." International Journal of Educational Development, Volume 48.
[31] Holcombe, Randall. 1998. "Entrepreneurship and Economic Growth." Quarterly Journal of Austrian Economics, Vol. 1, No.2 (Summer 1998), 45-62.
[32] Ikamari, Lawrence. 2005. "The Effect of Education on the Timing of Marriage in Kenya." Demographic Research 12(1), 1-28.
[33] Ikeda, Sanford. 2003. "How Compatible Are Public Choice and Austrian Political Economy?" Review of Austrian Economics 16:1, 63–75.
[34] Jejeebhoy, Shireen. 1995. Women's Education, Autonomy, and Reproductive Behaviour: Experience from Developing Countries. Oxford: Clarendon Press.
[35] Jejeebhoy, Shireen, and Shiva Halli. 2006. "Marriage Patterns in Rural India: Influence of Sociocultural Context." In The Changing Transitions to Adulthood in Developing Countries: Selected Studies, ed. Cynthia Lloyd, Jere Behrman, Nelly Stromquist, and Barney Cohen, 172-199. Washington, DC: National AcademiesPress, 172–199.
[36] Jensen, Michael and William Meckling. 1979. "Rights and Production Functions: An Application to Labor-Managed Firms and Co-Determination." Journal of Business 52 (Oct. 1979), 469-506.
[37] Johnson-Lans, Shirley. 2008. "Do NGOs Make a Difference? A Case Study of Rural Rajasthan." Vassar College Working Paper.
[38] Johnson-Lans, Shirley and Shweta Kamdar. 2005. "Effects of Female Literacy in Villages in Rural Rajasthan," Vassar College Working Paper.
[39] Kamanda, Mamusu, Nyovani Madise and Sylke Schnepf. 2016. "Does Living in a Community with More Educated Mothers Enhance Children's School Attendance?" International Journal of Educational Development, Volume 48.
[40] Kimuna, Sitawa. 2008. Final Report on Support for Reproductive Health and Gender Needs for Displaced Populations with Special Attention to Adolescents 2001-2006. New York: United Nations Population Fund.
[41] Kirzner, Israel. 1973. Competition and Entrepreneurship. Chicago: University of Chicago Press.
[42] Kirzner, Israel. 1997. "Entrepreneurial Discovery and the Competitive Market Process: An Austrian Approach." Journal of Economic Literature, Vol. 35, No. 1, Mar. 1997, 60-85.
[43] Klein, Daniel. 2005. "The People's Romance: Why People Love Government (as Much as They Do)," The Independent Review, v. X, n. 1, Summer 2005.
[44] Lal, Deepak. 2000. The Poverty of Development Economics. Cambridge, MA: MIT Press.
[45] Leeson, Peter and J. Robert Subrick. 2006. "Robust Political Economy." Review of Austrian Economics, 19:107-111.
[46] Locke, John. 1988. Two Treatises of Government. Cambridge, UK: Cambridge University Press.
[47] McCarter, Elissa. 2006. "Women and Microfinance: Why We Should do More." University of Maryland Law Journal of Race, Religion, Gender and Class, Vol 6:353.
[48] Mill, John Stuart. 1978[1959]. On Liberty. Indianapolis and Cambridge: Hackett Publishing Co.
[49] Mises, Ludwig von. 1990[1920]. "Economic Calculation in the Socialist Commonwealth." Auburn, AL: Ludwig von Mises Institute.
[50] Mises, Ludwig von. 1998[1949]. Human Action: A Treatise on Economics. The Scholar's Edition, Auburn, AL: Ludwig von Mises Institute.
[51] Mises, Ludwig von. 2007[1955]. Economic Policy: Thoughts for Today and for Tomorrow.Auburn, AL: Ludwig von Mises Institute.
[52] Neal Sarah, Zoe Matthews, Melanie Frost, Helga Fogstad, Alma V. Camacho, and Laura Laski. 2012. Childbearing in Adolescents Aged 12–15 Years in Low Resource Countries: A Neglected Issue. New Estimates from Demographic and Household Surveys in 42 Countries. Acta Obstetricia et Gynecologica Scandinavica, 91: 1114–18.
[53] North, Douglass and Barry Weingast. 1989. "Constitutions and Commitment: The Evolution of Institutions Governing Public Choice in Seventeenth-Century England," Journal of Economic History, 49:803-32.
[54] OECD (2010), Investing in Women and Girls: The Breakthrough Strategy for Achieving All the MDGs," https://www.oecd.org/dac/gender-development/45704694.pdf
[55] Olson, Mancur. 1982. The Rise and Decline of Nations: Economic Growth, Stagflation, and Social Rigidities. New Haven: Yale University Press.
[56] Pennington, Mark. 2011. Robust Political Economy: Classical Liberalism and the Future of Public Policy. Cheltenham, UK and Northampton, MA: Edward Elgar.
[57] Price Waterhouse Coopers (2014), "Unlocking the Potential: Investing in Women and Girls." London: Price Waterhouse Coopers.
[58] Read, Leonard. 1958. "I, Pencil: My Family Tree as Told to Leonard Read." Irvington-on-Hudson: Foundation for Economic Education.
[59] Riddell, Abby and Miguel Niño-Zarazúa. 2016. "The Effectiveness of Foreign Aid to Education: What Can Be Learned?" International Journal of Educational Development, Volume 48.
[60] Rosenberg, Nathan. 1960a. "Capital Formation in Underdeveloped Countries." American Economic Review, Vol. 50, No. 4, Sep. 1960, 706-71.
[61] Rosenberg, Nathan. 1960b. "Some Institutional Aspects of the Wealth of Nations." Journal of Political Economy, Vol. 68, No. 6, Dec. 1960, 557-570.
[62] Rothbard, Murray. 1998. The Ethics of Liberty. New York: New York University Press.
[63] Sandiford, P.J., M. Cassel and G. Sanchez. 1995. "The Impact of Women's Literacy on Child Health and its Interaction with Access to Health Services." Population Studies 49,5-17
[64] Scully, Gerald. 1988. "The Institutional Framework and Economic Development." Journal of Political Economy, Vol. 96, No. 3, Jun. 1998, 652-662.
[65] Scully, Gerald. 1992. Constitutional Environments and Economic Growth. Princeton: Princeton University Press.
[66] Scully, Gerald. 2002. "Economic Freedom, Government Policy and the Trade-Off Between Equity and Economic Growth." Public Choice 113:1, 77-96.
[67] Stroup, Michael. 2011. "Does Economic Freedom Promote Women's Well-Being?," in Gwartney, James, Robert Lawson, and Joshua Hall. Economic Freedom of the World: 2011 Annual Report. Vancouver, BC: Fraser Institute.
[68] Taylor-Robinson, Michell and Roseanna Heath. 2003. "Do Women Legislators Have Different Policy Priorities than Their Male Colleagues? A Critical Case Test." Women and Politics 24(4), 77-101.
[69] Tooley, James. 2013. The Beautiful Tree: a Personal Journey into how the World’s Poorest People are Educating Themselves. Washington, DC: Cato Institute.
[70] Tullock, Gordon. 1967. "The Welfare Costs of Tariffs, Monopolies and Theft." Western Economic Journal 5, 224-232.
[71] Tullock, Gordon. 1975. "The Transitional Gains Trap." The Bell Journal of Economics, Vol. 6, Issue 2, 671-678.
[72] UNICEF, Annual Reports. 2005, 2015. New York: UNICEF.
[73] United Nations Department of Economic and Social Affairs (UNDESA). 1997. "1997 Report on the World Social Situation: Social Development," New York: UNDESA.
[74] Woetzel, Jonathan, Anu Madgavkar, Kweilin Ellingrud, Eric Labaye, Sandrine Devillard, Eric Kutcher James Manyika, Richard Dobbs, and Mekala Krishnan. 2015. "The Power of Parity: How Advancing Women’s Equality Can Add $12 Trillion to Global Growth." London, San Francisco and Shanghai: McKinsey Global Institute.
[75] World Health Organization. 2015. The Global Strategy for Women's, Children's and Adolescents' Health (2016-2030). Geneva: World Health Organization.
[76] World Health Organization. 2016. Global health estimates 2015: deaths by cause, age, sex, by country and by region, 2000–2015. Geneva: World Health Organization.
[77] Yunnus, Muhammad. 2008. Banker to the Poor: Micro-Lending and the Battle Against World Poverty. New York: Public Affairs.